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FCA tightens listing rules to give minority shareholders more power

Wed, 06th Nov 2013 15:26

Minority shareholders in large companies are to be given more powers as the City regulator tightens listing rules in London.In a move which it hopes will "protect" small investors, the Financial Conduct Authority (FCA) has strengthened its listing rules to give shareholders "additional voting rights and greater influence" over key decisions.However, the new guidelines have drawn criticism: according to the Financial Times, lawyers in New York have warned that the amendments could hinder new initial public offerings in London.The FCA is responding to concerns from the investment community over the governance of premium-listed companies with a controlling shareholder. It assured that the voice of minority shareholders will strengthen "without turning minority protection into minority control".The new rules say that these companies must be run independently of their controlling shareholders, and the appointment of independent directors would have to be voted on by independent shareholders and also minority investors.The guidelines are aimed at preventing such corporate governance scandals as those seen at mining groups ENRC and Bumi which caused disputes between owners and other stakeholders after controversial transactions.The new rules will affect listed companies on the main market in London with a market capitalisation of over £700m and a controlling shareholder of 30% or more. It is thought that this will apply to around half of the FTSE 100 index, such as Sports Direct in which founder Mike Ashley controls 61.7%, and AB Foods in which Wittington Properties owns 54%.David Lawton, the FCA's Director of Markets said that "active engagement" by all shareholders is necessary to ensure markets work well. "By safeguarding minority interests from abuse by controlling shareholders, these changes will promote market integrity and empower minority shareholders to hold the companies they invest in to account," he said.BC
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20 Sep 2013 11:36

London midday: Stocks pause ahead of German elections

Stocks were trading broadly flat by Friday lunchtime as markets paused for breath in the aftermath of the Federal Reserve's surprise decision not to taper quantitative easing, though upside was limited ahead of the German elections this weekend. After a weak start, the FTSE 100 was more or less unc

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20 Sep 2013 08:17

London open: Markets pull back as post-Fed rally fades

Markets pulled back on Friday morning after a sharp rise the day before in the aftermath of the Federal Reserve's surprise decision not to taper quantitative easing. The FTSE 100 slipped slightly in early trade, falling 0.1% to 6,617, retreating after a 1% jump pushed it to 6,625.39 on Thursday. S

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18 Sep 2013 17:58

INTERVIEW-Sable Mining confident will export iron ore through Liberia

* Exporting through Liberia improves viability of Guinea project * Aims to raise $200-300 million next year * Targeting 5 million tonnes iron ore per year after 2015 By Stephen Eisenhammer LONDON, Sept 18 (Reuters) - Guinea-focused Sable Mining is confident it will get a

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17 Sep 2013 09:24

Miner ENRC wages battle over leaks as London departure nears

LONDON, Sept 17 (Reuters) - Kazakh miner ENRC is pressing ahead with its battle against a former board member whom it accuses of orchestrating damaging leaks, handing a London court what it says are transcripts of conversations detailing sensitive information. ENRC is set to delist from the

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17 Sep 2013 07:24

Tuesday newspaper round-up: Argentina, Yellen, European banks

Shale oilfields in countries such as Argentina, Russia and Algeria hold larger reserves than the regions at the heart of the US energy boom, and have the potential to make a significant contribution to global crude supplies in the next decade, according to new research. Analysis by IHS published on

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16 Sep 2013 14:40

FTSE 100 movers: Fresnillo plunges on levy concerns

Precious metals miners Fresnillo has plummeted on concerns over levies on the mining sector in Mexico. "All of Fresnillo's seven operational mines are in Mexico, leaving it heavily exposed to such an increase in its tax burden," said Financial Sales Trader Max Cohen from Spreadex. Sector peer ENRC

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16 Sep 2013 08:29

London open: Stocks jump ahead of Fed, Syria concerns ease

Markets opened strongly on Monday morning as eyes begin to turn to the Federal Reserve ahead of its all-important policy meeting this week while concerns about Syria eased. The Federal Open Market Committee's two-day meeting is due to come to a close on Wednesday and will likely be one of the most

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12 Sep 2013 12:52

Founders Extend Deadline For ENRC Takeover Offer; Have 69.54% Stake

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12 Sep 2013 10:05

Coca-Cola HBC joins FTSE 100

Coca-Cola Hellenic Bottling Company confirmed on Thursday it will be joining the FTSE 100 and FTSE All-Share indices. The world's second-largest Coca-Cola anchor bottler, based in Greece, will be included on the indices from close of business on September 20th. This promotion comes after the comp

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12 Sep 2013 09:17

IN THE KNOW: FTSE Index Movers Experience Mixed Fortunes

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11 Sep 2013 18:33

UPDATE 1-Serco, ENRC demoted in reshuffle of Britain's FTSE

* Serco leaves Britain's top index after five-year stay * ENRC and John Wood Group also leave FTSE 100 * Coca Cola HBC, Sports Direct and Mondi make FTSE debuts * Reshuffle implemented after market close on Sept. 20 By Alistair Smout LONDON, Sept 6 (Reuters) - Outsou

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11 Sep 2013 17:32

Serco, ENRC demoted in reshuffle of Britain's FTSE

LONDON, Sept 11 (Reuters) - Outsourcing firm Serco and Kazakh miner ENRC will both leave Britain's top share index, FTSE confirmed on Wednesday, following a share price slumps during a year beset with difficulties for both firms. Energy services firm John Wood Group is also relegated to th

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11 Sep 2013 16:12

IN THE KNOW: Coca-Cola HBC, Sports Direct Mondi Line Up For FTSE 100

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6 Sep 2013 13:29

IN THE KNOW: Coca-Cola HBC, Sports Direct Mondi Line Up For FTSE 100

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6 Sep 2013 08:23

London open: Stocks fall as investors await US non-farm payrolls

Stocks opened broadly lower on Friday morning with investors refraining from building positions ahead of the all-important US jobs report due out this afternoon, seen as a deciding factor in the Federal Reserve's impending withdrawal of stimulus. US data released Thursday threw more weight behind t

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